by Karl Denninger
Not long ago I noted that there had been a dramatic drop in Facebook advertising of all sorts.
Well, apparently someone in the “analyst community” noticed too, because today the stock is taking a bit of a header.
Here’s the problem, as I see it — it hasn’t recovered and won’t because those ads, especially video ads, simply don’t work. There was a big spam factor right near the end of the year but as with all such “new things” if they don’t produce sales that lead to enough profit that it’s worth it “all-in” they fade fast and hard.
Well, it’s fading all right….. toward black.